Severstal to Buy Back 20% of Shares Offered by Shareholders

OAO Severstal (CHMF), Russia’s second- largest steel producer, said it will buy back about one of every five shares offered by shareholders in an offer announced in February.

Severstal set the pro rata ratio for the buyback at 0.1965796360, which is the number of shares it is buying back 170 million, divided by the 864.8 million shares proffered by shareholders, the company said in a regulatory filing today.

Severstal plans to complete repurchasing 170 million shares for 390 rubles apiece on July 4. The steelmaker is pursuing the buyback after stock accumulated in its Lybica unit when Severstal holders swapped shares for those in Nordgold NV during the division’s spinoff. Most of the shares Severstal is buying will be canceled.